Since the last Litecoin price technical analysis Will This Support Hold?, Litecoin has gained $0.067 or 2.45 percent to trade at $2.800.
The better part is that Litecoin is currently in a short-term technical pattern which will lead to a big swing in the price.
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Read on below the latest technical considerations of the daily LTC-USD price chart.
Litecoin Chart Structure – Upon a closer look at the price action of the past 6-7 sessions, it can be found that Litecoin has been trading in a small triangle. A triangle, which is a continuation pattern, in a downtrend implies that a bigger downmove can be expected in the coming sessions.
Moving Averages – When Litecoin breaks out of the triangle, expect it to test the 200-day SMA of $2.5136.
Moving Average Convergence Divergence – MACD, Signal Line and Histogram extend their stay in the sub-zero region as pessimism continues to cloud over Litecoin. The latest respective values are -0.3289, -0.2914 and -0.0376.
Momentum – The Momentum indicator is also bearish with its reading of -0.7052.
Money Flow Index – The MFI is once again indicating an oversold condition with its observation of 17.8166.
Relative Strength Index – The 14-day RSI value of 31.3864 is also on the verge of hitting oversold levels. A value below 30 is considered oversold from a short-term perspective.
Conclusion
While the chart structure says that Litecoin is due for a major correction, a couple of technical indicators (MFI and RSI) are indicating that the cryptocurrency might be oversold and see a rebound.
Traders are always on the lookout for patterns such as the triangle above, and start creating their positions based on them. Those who want to play safe may choose to wait for a clear breakout.
Expect to see some good price action in the coming sessions. Keep in sync with the Bitcoin market for more clues.